Although economic activity has improved and inflationary pressures have increased recently, the Bank of Canada is expected to refrain from raising interest rates as policy makers prudently allow some time to assess domestic and global economic conditions, and decide whether to extend their campaign of rate hikes into 2011.
The Bank of Canada also announces rates Tuesday and is likely to keep them steady at 1% given that economic growth has stalled. Stagnant job creation in the U.S., Canada’s largest trading partner, as shown by the very disappointing US monthly jobs reports results is also likely to influence the BoC’s moves. In addition, a surprisingly weak 3Q GDP growth of +1% annualized may have Governor Carney wondering if he was too early with his tightening policy earlier in the year.
Daily Usd/Cad Chart
Near term, Support 2 near 0.9988 is the immediate support, follows by 0.9959, its recent Low. From the Technical outlook, A Long opportunity may be well presented from the area near 0.9950 which is oversold as extreme level.
Strategy: Looking to Long Usd/Cad near 0.9950 ,for target near 1.0300
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